Live in South Dakota, Work in Idaho: Which State Taxes Your Paycheck?
Answer
Only Idaho taxes you. Idaho withholds from wages earned inside the state and you file a Idaho nonresident return. South Dakota levies no personal income tax on wages, so there is no resident return on the other side — and no credit, because there is no South Dakota tax to offset.
Last verified
Living in a state with no income tax removes the resident return, but it does not shelter income you earn somewhere else. Idaho taxes what is earned inside Idaho, whoever earns it, and a nonresident return is how that gets settled.
What you file
- 1Nonresident return · IdahoForm 43
File a Idaho nonresident return for the wages you earned in Idaho. South Dakota has no wage income tax, so there is no second return and no credit to claim.
The two states, side by side
| South Dakota | Idaho | |
|---|---|---|
| Taxes wages | No | Yes — flat |
| Reciprocity partners | None | None |
| Convenience rule | No | No |
| Nonresident return | Not applicable | Form 43 |
| Credit for other-state tax | No income tax | Form 39NR |
| Nonresident safe harbour | Not applicable | None published |
| Local income tax | No | No |
| Revenue department | South Dakota Department of Revenue | Idaho State Tax Commission |
| Last verified |
The other direction
Reversing the commute does not always reverse the answer. Living in Idaho and working in South Dakota gives:Home state only.
Same two states, different situation
The withholding answer turns on how you are paid and where the work happens, not only on which two states are involved.
- Remote worker: South Dakota → IdahoNo state income tax on your wages
- 1099 contractor: South Dakota → IdahoClient state only, if you work there
- Moved mid-year: South Dakota → IdahoOne part-year return — the state you moved to
Other South Dakota pairs
Questions people actually ask
I live in South Dakota and work in Idaho. Which state takes the tax out of my paycheck?
Only Idaho taxes you. Idaho withholds from wages earned inside the state and you file a Idaho nonresident return. South Dakota levies no personal income tax on wages, so there is no resident return on the other side — and no credit, because there is no South Dakota tax to offset.
Which state should my employer be withholding for?
Idaho. The wages are sourced to Idaho, so Idaho withholding is correct and there is no South Dakota withholding to set up, because South Dakota levies no income tax on wages.
How current is this?
The South Dakota and Idaho rules on this page were last checked against South Dakota Department of Revenue and Idaho State Tax Commission on 2026-08-07. We re-check the full grid every December after state legislative sessions close, and re-check the convenience-of-the-employer states quarterly because that is where the rules move fastest.
Sources
Every fact above comes from the revenue department that publishes the rule. We do not cite secondary summaries, and we do not restate a figure we could not find at source.
- South Dakota Department of Revenue — individual income taxaccessed 2026-08-07
- Idaho State Tax Commission — individual income taxaccessed 2026-08-07